A central bank is an institution that
A)pays for government expenditures.
B)controls a nation's monetary policy.
C)runs a country's stock market.
D)determines a nation's fiscal policy.

Question

Quizplus · Accepted Answer

A central bank is responsible for controlling a nation's monetary policy, which involves managing the money supply, setting interest rates, and regulating financial institutions. They are independent of the government and their main goal is to promote stability and economic growth. They do not pay for government expenditures, run a country's stock market, or determine fiscal policy.

A Central Bank Is an Institution That